Rob discusses the current state of the UK housing market and its potential implications for the economy, focussing upon the decrease in mortgage borrowing and the challenges faced by homebuyers due to higher interest rates. Rob also mentions that lending is tightening, which could have negative effects on the economy and references comments from Karen Ward, an advisor to the chancellor, who predicts that central banks may push Western economies into recession to combat inflation. 

KEY TAKEAWAYS

• UK mortgage borrowing is decreasing, making it more challenging for homebuyers to afford a home. This is due to higher interest rates and tightening lending criteria.
• Karen Ward, an advisor to the chancellor and a strategist at JPMorgan Asset Management, predicts that central banks will push Western economies into recession to combat inflation. This suggests that the UK and global economies may face a significant downturn.
• The decrease in mortgage lending and tightening of credit and finance in the UK indicate a slowing down of the market and potential recession. Soft landings are unlikely, and the recession is expected to be severe.
• Despite the gloomy outlook, the recession will also create opportunities for investors. People may be motivated to sell properties, and there will be potential for profitable investments.
• It is crucial to stay informed and be aware of the true state of the economy, as mainstream media may not accurately represent the situation. Being prepared and taking caution can help navigate through the challenges and seize opportunities during the recession.

BEST MOMENTS

"There is more gloom to come with central banks set to push Western economies into recession in order to be sure of winning the battle against inflation." 

"We're in for something that I think is going to be like Armageddon. I don't say that lightly, and I don't want that to happen."

"The screw is being tightened by Bank of England, probably the government, and other things behind the scenes." 

"It's going to be a time where a lot of people will be affected at the same time. It's going to be a great opportunity to quite literally cash in on everything that's going on."

VALUABLE RESOURCES

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ABOUT THE HOST

Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.

BOOKS 

Property FAQs = https://amzn.to/3MWfcL4  

Buy To Let: How To Get Started = https://amzn.to/3genjle  

101 Top Property Tips = https://amzn.to/2NxuAQL  

WHERE TO FIND US

https://linktr.ee/thepropertynomadspodcast